Although the stock market is unpredictable, investments in gold and silver are often viewed as being much more reliable. For this reason, gold and silver can be tempting choices for retirement accounts. When you are deciding upon gold and silver IRA accounts, there are a few key factors to understand.
Understanding Precious Metal IRAs
Gold and silver IRA accounts are part of a wider trend known as a precious metal IRA. In a traditional IRA, you deposit pre-tax funds to a retirement account. In contrast, a precious metal IRA is a type of self-directed IRA. When you choose to invest in a self-directed IRA, you can invest a variety of assets, including real estate and precious metals.
Why People Choose Precious Metal IRAs
Precious metal IRAs are chosen because people worry about the long-term value of a traditional IRA. Precious metals such as gold and silver typically experience growth over the long term. This makes precious metal IRAs seem to be safer investments for those who are worried about potential economic disasters.
Division of Precious Metal IRAs and Traditional IRAs
Typically, those who invest in a gold and silver IRA account choose to also invest in traditional IRA accounts. The exact amount that you choose to invest should be discussed with your financial advisor. However, it is generally advised that up to 10% of your total IRA investments can come from precious metal IRAs.
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